Lido V2 Goes Live: Ethereum Withdrawals Revolutionize the Staking Experience

By 0xK2 05/16/23 12:48 AM

Following a successful on-chain vote, the highly anticipated Lido V2 upgrade has officially gone live on the Ethereum mainnet. This significant upgrade marks a major milestone for the Lido protocol, as it introduces new features that greatly enhance the Ethereum staking experience and drive the protocol towards increased decentralization.

The most user-facing aspect of Lido V2 is the introduction of Ethereum withdrawals. This exciting development allows Ethereum stakers with Lido to directly unstake their ETH through the protocol. Prior to this upgrade, stakers faced certain inconveniences when trying to access their staked ETH. With the implementation of Ethereum withdrawals, the process becomes more streamlined, enabling users to efficiently manage their staked ETH within the Ethereum DeFi ecosystem.

Following a successful on-chain vote, Lido V2 is officially here.https://t.co/36EmuagToD

🏝️ pic.twitter.com/sl4kjNpUYw

— Lido (@LidoFinance) May 15, 2023

To experience Ethereum withdrawals on Lido, users can visit stake.lido.fi/withdrawals. For detailed information on the withdrawal process, the Lido Help Centre is a valuable resource.

Lido V2 brings forth two major components that significantly improve the platform. Firstly, withdrawals empower Lido on Ethereum stakers to burn their stETH and exit the protocol at a 1:1 ratio, achieving an important milestone in establishing an open on/off ramp into the Ethereum staking ecosystem. This enhances the accessibility and flexibility of staking for users.

Secondly, the introduction of the Staking Router represents a modular architectural design that enables the development of on-ramps for various Node Operators. This includes solo stakers, DAOs, and Distributed Validator Technology (DVT) clusters, which fosters a more diverse and robust validator ecosystem.

In addition to these key components, Lido V2 incorporates several other changes. Notably, the Oracle smart contract and off-chain daemon software underwent a significant rewrite to support the withdrawals functionality and accommodate a larger number of Node Operators, improving scalability and efficiency.

To ensure the security and reliability of the protocol, Lido V2 underwent rigorous security audits conducted by renowned firms such as Sigma Prime, ChainSecurity, Oxorio, Statemind, HEXENS, MixBytes(), and Certora. These audits provide users with confidence in the protocol’s integrity.

Looking ahead, Lido remains committed to delivering a secure and reliable protocol for staking ETH. The team is excited to witness how these new features will enhance the staking experience for users and plans to continue building upon this foundation in the months and years to come.

To delve deeper into the details of the Lido V2 upgrade and its features, users can refer to the Introduction to V2 documentation. For any inquiries or discussions, the Lido Discord community is a valuable resource.

With Lido V2 now live, Ethereum stakers have gained greater control over their staked ETH, marking a significant step forward for the Lido protocol and the Ethereum staking ecosystem as a whole.